Casteel joined the discount supermarket chain three years ago as its president and chief executive officer. He relinquished the CEO duties in January to Eric Claus, a retail industry veteran who had spent the previous two-plus years as chairman, president and CEO of Red Apple Stores Inc., a chain of value retail stores based in Mississauga, Ontario.
Supervalu filed plans in January with the Securities and Exchange Commission to spin off Save-A-Lot as a private company. Should the spin-off occur, the new company would be headquartered at Save-A-Lot’s current base in Earth City, Mo. Claus would lead the independent company.
The idea of a spin-off was floated last summer by Supervalu chief Sam Duncan, who said splitting off Save-A-Lot could allow Supervalu to focus on its other 200 grocery store brands, such as Farm Fresh and Cub Foods, and its wholesale business, which is one of the largest in the country. Duncan also said such a move would help make Save-A-Lot more competitive.